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How Much Does A Million Dollar Life Insurance Policy Cost

Written by Jason Patterson

One of the most common reasons that Americans don’t purchase a life insurance policy is because of the cost. Most people see the policies as a waste of money, but that couldn’t be further from the truth. Because rates are one of the reasons that so many people don’t have life insurance, we are going to look at what a one million dollar life insurance policy cost would be.

There are thousands of families that are under-insured and will find themselves short of resources if their spouse were to pass away.

Having the right amount of life insurance is just as important as having the policy in the first place. While many families assume that a million dollars is excessive for their needs, they later discover that a million might actually not be enough.

We know that finding the perfect life insurance plan can be a difficult search, but we are here to help. This article is going to look at the types of life insurance and the different options available to you. It is also going to look at the cost of a million dollar life insurance policy.

What Determines Policy Costs and How to Get an Affordable Policy

There are dozens of factors used in determining how much an applicant will pay for an insurance policy. The company is going to use age, health, tobacco usage, term length, zip code, medical records, and much more to calculate monthly premiums for coverage.

Age is the primary aspect that is going to impact the monthly premiums for the plan. The older that an applicant is, the more they are going to pay for coverage.

How You Can Save On Policy Rates

If you want to save money on a one million dollar life insurance policy, it’s better to apply sooner rather than later. The longer that you wait, the more money you’ll pay every month for the same insurance protection. That doesn’t mean that older applicants are going to pay massive premiums for their insurance plan. Regardless of age, there are several options for affordable insurance plans.

The health of the applicant is going to be factored into the insurance costs. Once the initial paperwork is completed for the policy, the insurance company is going to schedule an appointment for a paramedic or registered nurse to conduct a medical exam on the applicant.

The company wants to get an overall picture of the health of the applicant through their blood pressure, heart rate, weight, and get a blood and urine sample to test for any underlining health complications. The better the outcome of the medical exam, the less risk that’s posed to the insurance company, which translates into lower monthly rates.

Get Healthy

If you’re looking to save money on your insurance protection, you’ll need to improve your overall health. The best ways to go about this are by beginning a healthy diet and exercising regularly.

Both of these can help you shed those extra pounds and lower your blood pressure, and reduce your risk of any health complications. It’s time to lace up those running shoes and hit the gym, it could save you hundreds of dollars on your million-dollar life insurance plan.

No Tobacco

Any applicant that is a smoker is going to pay drastically more for their insurance coverage than a non-smoker. Tobacco users have a drastically higher chance of having health complications later, which means the insurance company views smokers as a much greater risk to insure.

If you’re looking to get the cheapest million dollar life insurance policy cost possible, you’ll need to cut out any tobacco products before applying for the coverage. If you want to be listed as a non-smoker, you’ll need to be tobacco free for at least one whole year before the medical exam.

If you’re an applicant that only smokes an occasional cigar for celebrations, then it’s important that you find a company that is going to understand your situation and give you favorable premiums for your cigar smoking. There are some companies that will automatically lump you in with the smoker’s rates, but other companies will give you non-smoker’s rates depending on how often you smoke a cigar. Most insurance companies will allow one cigar a month and still give you non-smoker’s rates.

How Much Is A One Million Dollar Life Insurance Policy Cost Going To Be?

Now that you understand the different factors that are used by the insurance company, we can look at generic quotes to give you an idea of how much you would pay for coverage. As we mentioned, because there are variables that are used, these are only ballpark numbers for insurance policies, each person could receive drastically different rates.

We are going to look at rates for term insurance policies because term policies are much more affordable than whole life policies. If you’re looking for the cheapest million-dollar insurance, a term is the best option.

First, let’s look at annual rates for a male with preferred rates and a non-smoker:

20 Year Term
30 Year Term

There is a significant difference in how much a male will pay versus what a female will pay for the same coverage.These are the totals that you’ll pay every year for a million-dollar insurance policy, as you can see, they are much more affordable than most applicants think. When you break up these amounts into monthly payments, they are well worth the investment. For example, if you are a 25-year-old male, you’ll only pay $36 every month for one million dollars in coverage.

Let’s look at some sample rates for a female in the same condition as the example above:

20 Year Term
30 Year Term

Getting a Million Dollar Insurance Policy on average, women will pay much less for their insurance policies than a man will. A million dollar policy is extremely affordable for a woman that is looking to get coverage for their loved ones. Regardless of your health, age, or gender, it’s vital that your loved ones are covered, and you can’t put a price tag on the future of your family.

Nothing is more important than ensuring that your family is protected against the millions of different things that could happen tomorrow. Don’t wait any longer to get the peace of mind knowing that your family will be taken care of, regardless of what happens to you.

Million Dollar No Exam Life Insurance

If you want life insurance coverage without taking the medical exam, you can buy a no exam policy. It’s important to realize you are going to have very few options for no exam life insurance. The vast majority of companies are only going to sell you around $300,000 worth of insurance. For most families, this won’t be nearly enough insurance protection. There are only a couple of companies that offer up to a million dollars of coverage without taking the medical exam.

Disadvantages Of No Exam Policies

One of the most notable disadvantages of no exam policies is they are going to cost more every month. No exam plans are going to be two or three times more expensive than a traditional insurance policy. If you want to get the most affordable life insurance plan, you need to apply for one which requires a medical exam. The more information the insurance companies receives about your health, the less risk you are for insurance.

Benefits of No Exam Policies

One of the benefits of buying a no exam plan is how quickly you can be approved for life insurance.

With a traditional policy, you have to wait for the insurance company to schedule the medical exam, and then wait for them to receive the rates and review them based on their medical underwriting. The whole process can take close to two months.

So, if you’re looking to get the lowest million dollar life insurance policy cost that you can, the best way is by working with one of our independent insurance agents.

About Jason Patterson

Jason Patterson has been in the insurance industry for over fifteen years. Starting in 2005, he became one of the first agents to sell medicare supplements online. From that small start, he grew an agency that helped thousands of people with their insurance needs in all fifty states.

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